Business
Proposed Placing
Proposed Placing.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n \nRNS Number : 2209I Sirius Real Estate Limited 20 March 2018 \n\n \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014.\nTHIS ANNOUNCEMENT (INCLUDING THE APPENDIX) AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR ANYOTHER JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION IS UNLAWFUL.\n \nFor immediate release\n20th March 2018\nSirius Real Estate Limited \n(\"Sirius Real Estate\", \"Sirius\" or the \"Company\")\nProposed Equity Placing \nSirius Real Estate, a leading operator of branded business parks providing conventional space and flexible workspace in Germany, is pleased to announce the proposed placing of new Ordinary Shares (the \"Placing Shares\") to raise up to £35 million (before expenses), in order to acquire a portfolio of assets and support the Company's growth strategy. The Placing Shares will be offered to institutional and other investors by way of an accelerated bookbuild (the \"Placing\").\nRationale for the Placing and use of proceeds\nHaving substantially committed the proceeds of the Company's asset recycling that has taken place since January 2017, as well as the equity fund raises completed last year, the Company has identified further acquisition opportunities offering an attractive mix of stable income and value add potential. The target portfolio of assets comprises a total of 5 assets (3 of which have been identified with the remaining 2 to be identified) which potentially could be acquired for approximately €77 million including acquisition costs. The target portfolio has an EPRA net initial yield of around 7.3% and vacancy relating to the 3 assets identified of around 17%. The Placing is expected to be earnings accretive when fully invested.\nAndrew Coombs, Chief Executive of Sirius, said, \"The portfolio assets offer an attractive combination of a stable income stream together with excellent scope to create additional value and will fit well within our existing portfolio. We are therefore pleased to be putting forward this opportunity to shareholders in the confidence that it will support an increase in the total returns Sirius can generate.\"\nDetails of the Pla...